In an attempt to finance construction of road projects, NHAI has decided to generate ₹20,000 crore through its maiden InvIT after which it will go for a larger round, depending on the response from investors. Union minister Nitin Gadkari said that the InvIT offer is part of the government's plans to tap alternative sources of financing to boost public spending in the roads and infrastructure sector amid declining private sector interest in the BOT model, where the entire initial cost is borne by them. The government has also firmed up funds from domestic lenders to raise money for long-gestation projects. The minister said that they are working closely with RBI on the issue, which has assured that banks will fund projects up to 30 years, subject to financial viability. This is for the total cost of projects, land acquisition, cost of construction, against toll receipts. SBI has already assured ₹50,000 crore.
